Leading state-owned Chinese banks, Bank of Communications and China Construction Bank, are advancing their pilot program for a sovereign digital currency, reports the South China Morning Post. The banks have started exploring the possibility of allowing holders of the ‘e-yuan’ to purchase insurance products and investment funds online.
If successful, this could advance the applicability of the country’s central bank digital currency beyond the low value, daily retail payments laid out in the original blueprint by the People’s Bank of China when it first introduced the idea of a digital currency in 2014.
China Construction Bank said it has started working with Shanghai Tiantian Fund Distribution, a platform owned by financial data services provider East Money, to enable holders of digital yuan to make online fund investments. The collaboration also involves e-commerce giant JD.com, the lender said in its interim results announcement released last Friday.